<div id="readability-page-1">We recently compiled a list of the 10 Best Stocks to Buy According to John W. Rogers of Ariel Investments. In this article, we are going to take a look at where First American Financial Corporation (NYSE:FAF) stands against John W. Rogers’ other stock picks.John W. Rogers Jr. is a prominent American investor and hedge fund manager who serves as the chairman, CEO, and CIO of Ariel Investments. Rogers graduated from Princeton University in 1980 and spent two and a half years as a stock broker at William Blair. Three years later, he founded Ariel Investments, the first Black-owned mutual fund company in the United States, with $200,000 supported by family and friends. Howard University would be Ariel Investments’ initial customer, with the firm receiving $100,000 to manage its endowment. The next year, the city of Chicago granted Ariel $1 million to operate a pension plan. By 2009, Ariel Investments was managing $3.3 billion in assets, which has since increased to a staggering $12.9 billion.Notably, the investor’s flagship Ariel Fund’s faced one of its first hurdles back on October 19, 1987, the day of the crash known as Black Monday. The next major test came after the dot-com crisis in 2000, with the Ariel Fund rebounding strongly, returning 29% that year and 14% in 2001. During the 2008 financial crisis, Rogers’ investments in equities, such as real estate investment firm CBRE Group and newspaper publisher Gannett, caused the fund to lose 48% before returning 63% in 2009.Rogers appreciates patience as he looks for companies that he believes will reach their full potential in a set period of years. This strategy of scooping up value stocks, pioneered by famed investors Warren Buffett and Benjamin Graham, involves buying stocks whose worth may be undervalued by the market. Speaking on a Bloomberg Invest Conference, the investor stated that market enthusiasts might get overly focused on short-term trends, and those prepared to look three or five years ahead may still uncover opportunities.Ariel Investments remains steadfast in its belief of value investing, even within the current market climate. This confidence in its strategy was reaffirmed in the fund’s Q1 2025 Investor Letter. Here is what Ariel Fund had to say:<blockquote> Most major U.S. indices ended the first quarter of 2025 in the red, with investors fleeing to safety as optimism for another year of U.S. outperformance driven by economic momentum and the new administration’s pro-business stance was quickly replaced by tariff fears and policy uncertainty. The Magnificent Seven, which drove most of the markets gains over the last three years, led the decline, falling nearly -15%. Value bested growth and large caps held up better than their small cap brethren. International equity markets, led by Europe and China, surged—delivering their strongest quarterly outperformance versus the U.S. in 15 years. Meanwhile, deteriorating confidence and apprehension about a global trade war is fueling recession fears. While Wall Street sits on edge and markets remain erratic, we are actively leaning into the volatility by judiciously acquiring the downtrodden shares of quality companies whose value should be realized over the long term. </blockquote><h3>Our Methodology</h3>For this list, we picked stocks from Ariel Investments’ 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds.Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).<div id="attachment_1205874">A modern office tower overlooking a city skyline, illustrating the power of its financial services division.</div><h3>First American Financial Corporation (NYSE:FAF)</h3>Ariel Investments’ Stake as of Q4: $249.3 millionNumber of Hedge Fund Holders: 28First American Financial Corporation (NYSE:FAF) is an American financial services firm that offers insurance and settlement services to the real estate and mortgage sectors. This undiversified business strategy means that the firm’s performance greatly depends on the housing market. Notably, First American Financial Corporation (NYSE:FAF) gets the majority of its revenue from the Title Insurance and Services sector.First American Financial Corporation (NYSE:FAF) reported first-quarter earnings per share of $0.84, beating analysts’ forecasts of $0.81 by $0.03. Revenue for the quarter came in at $1.58 billion, surpassing the average expectation of $1.55 billion. The Title Insurance and Services division reported a 12% year-over-year growth in total revenue, reaching $1.5 billion, driven by a 14% increase in direct premiums and escrow fees and a 16% increase in agent premiums. The Home Warranty division also had strong growth, with total revenue up 2% to $108 million and pretax income jumping 22%.Overall FAF ranks 6th on our list of John W. Rogers’ stock picks. While we acknowledge the potential for FAF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FAF but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires.Disclosure: None. This article is originally published at Insider Monkey.Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal! My #1 AI stock pick delivered solid gains since the beginning of 2025 while popular AI stocks like NVDA and AVGO lost around 25%. The numbers speak for themselves: while giants of the AI world bleed, our AI pick delivers, showcasing the power of our research and the immense opportunity waiting to be seized. The whispers are turning into roars. Artificial intelligence isn’t science fiction anymore. It’s the revolution reshaping every industry on the planet. From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards. Here’s why this is the prime moment to jump on the AI bandwagon: Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory. Imagine every sector, from healthcare to finance, infused with superhuman intelligence. We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything. This isn’t a maybe – it’s an inevitability. Early investors will be the ones positioned to ride the wave of this technological tsunami. Ground Floor Opportunity: Remember the early days of the internet? Those who saw the potential of tech giants back then are sitting pretty today. AI is at a similar inflection point. We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon. This is your chance to get in before the rockets take off! Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation. AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries. The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust. As an investor, you want to be on the side of the winners, and AI is the winning ticket. The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI. From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field. This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements. By investing in AI, you’re essentially backing the future. 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根據 Ariel Investments 的 John W. Rogers 的説法，First American Financial Corporation (FAF) 被認為是最佳購買股票之一。該公司專注於房地產和抵押貸款領域的保險和結算服務，報告第一季度每股收益為 0.84 美元，超出預期。收入達到 15.8 億美元，超過預期，其產權保險和服務部門實現了顯著增長。Ariel Investments 在 FAF 中持有 2.493 億美元的股份，該股票在對沖基金中備受青睞

First American Financial Corporation (FAF)：根據 Ariel Investments 的 John W. Rogers，是值得購買的最佳股票之一